The Bangko Sentral ng Pilipinas (BSP) is set to bolster the country's digital banking sector by accepting applications for four additional digital bank licenses starting 1 January 2025.
The move aims to provide consumers with a wider range of innovative financial services and to further deepen financial inclusion.
"We are seeking digital banks that can bring unique value propositions and reach underserved market segments," BSP Governor Eli Remolona Jr. stated.
"By expanding the digital banking landscape, we can gain valuable insights into how these institutions can effectively serve Filipinos and contribute to their financial well-being."
Applicants for the new licenses can either be established entities transitioning to digital banking or entirely new entrants.
The BSP will evaluate applications based on factors such as ownership structure, shareholder suitability, management competence, capital adequacy, business plans, and risk management practices.
Significant growth
The BSP's decision to open applications for additional digital banks comes on the heels of significant growth and success among the existing six digital banks in the Philippines.
These institutions have collectively attracted millions of customers and generated substantial profits, demonstrating the strong demand for digital financial services.
According to a report by McKinsey & Company, GoTyme Bank, UNO Digital Bank, and UnionDigital Bank have experienced substantial increases in market value, outperforming traditional banks.
UnionBank, in particular, has seen a surge in customer acquisition and loan growth, largely attributed to its digital banking subsidiary.
Expanding landscape
The BSP is expanding the digital banking landscape to promote financial inclusion and innovation.
Applicants must demonstrate unique value propositions and a commitment to serving underserved markets. The existing digital banks have shown promising growth and profitability.
The BSP's decision reflects the increasing importance of digital financial services in the Philippines.
By fostering a competitive and dynamic digital banking environment, the BSP aims to empower Filipinos with convenient, accessible, and affordable financial solutions.